Professional Documents
Culture Documents
Cpa Syllabus Final September 2021
Cpa Syllabus Final September 2021
JULY 2021
kasneb Towers, Hospital Road, Upper Hill
P.O. Box 41362 - 00100, Nairobi - Kenya
Tel: 254(020) 4923000
Cellphone: 0722-201214/0734-600624
E-mail: info@kasneb.or.ke Website: www.kasneb.or.ke
JULY 2021
FOREWORD
One of the cardinal objectives of any education system is to ultimately provide the economy
with competent, self-driven and morally upright human capital for sustainable growth and
prosperity. In order to effectively achieve this, it is important that the education system
continuously adapts to market dynamics at global, regional and national levels.
For professional examination bodies such as the Kenya Accountants and Secretaries National
Examinations Board (Kasneb), this translates to the need to regularly review their syllabuses
to match and, in an ideal setting, surpass market expectations. The drivers of syllabuses
change are wide and diverse and transcend various factors including economic, legal, social
and technological spheres.
It is in the above context that The National Treasury and Planning, as the parent Ministry of
Kasneb, is pleased to note the significant milestone in the completion of the major review
process for Kasneb, having also participated with other stakeholders in the review process.
This latest review has afforded Kasneb the opportunity to address emerging trends that define
the next generation of professionals, including data mining and analytics, digital competence,
soft skills and a global perspective in strategic decision making.
With the revised syllabuses, Kasneb is expected to continue playing a leading role in providing
the economy with competent professionals in the areas of accounting, finance, governance
and corporate secretarial practice, credit management, forensic investigations, information
communication technology and related areas. This is further expected to boost the
Government’s development agenda as defined under the Kenya Vision 2030 development
blueprint and the Big Four Agenda.
The successful implementation of the revised syllabuses will require the support of all
stakeholders. I wish therefore to urge for the continued support to Kasneb including from
various Government Ministries and Departments, regulatory bodies, employers, professional
institutes, universities and other training institutions, among others.
It is my conviction that the revised syllabuses will reshape the professional qualifications
frontier in the region and beyond and firmly place Kenya as one of the leading countries in the
provision of globally competitive professionals.
August 2021
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FOUNDATION LEVEL
INTERMEDIATE LEVEL
ADVANCED LEVEL
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(b) The Certified Public Secretaries of Kenya Act, Cap 534 of 1988.
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Kasneb working with other partners will be rolling out another post-professional
specialisation area in public financial management.
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3.6.4 The name of the candidate must not appear anywhere on the answer sheet.
3.6.5 Each answer sheet has a serial number indicated on the top, left hand side of the
answer sheet. Each candidate must indicate the serial number of the answer
sheet(s) used for each examination paper in the signature register.
3.6.6 Examination stationery will be provided in the examination room, but
candidates must bring their own blue or black ink pens, pencils, and rulers.
3.6.7 Mobile phones are strictly not allowed in the examinations room.
3.6.8 No stationery whatsoever may be removed from the examination room.
3.6.9 Candidates must not carry the examination question papers from the
examination room.
3.6.10 Candidates are allowed to use calculators provided that such calculators are
noiseless, cordless and non-programmable.
3.6.12 Strict silence must be observed during the entire duration of the examination.
3.6.13 Candidates must not possess any notes, printed paper or books in the
examination room, but must leave any such material with the chief invigilator.
Candidates using clipboards must ensure that such clipboards have no writing
on them whatsoever.
3.6.14 Smoking is not allowed in the examination room.
3.6.15 Candidates must not collude in the examination room by exchanging notes or
keeping the answer booklet in such a way that another candidate can read or
copy from the booklet.
3.6.16 Impersonation in the examination room is not only a serious offence but also a
criminal offence.
3.6.17 During the course of the examination, no candidate may leave the examination
room without permission from the chief invigilator. Any candidate who does so
will not be allowed to return to the examination room.
3.6.18 Candidates who finish the paper before the chief invigilator announces the end
of the examination and wish to leave the examination room while the
examination is in progress must inform the invigilator and hand in their scripts
to the invigilator before leaving the examination room. However, no candidate
will be allowed to leave the examinations room during the last fifteen (15)
minutes of the examination.
3.6.19 Candidates must not leave the examination room with any answer booklet or
answer sheets.
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FOUNDATION LEVEL
UNIT DESCRIPTION
This paper is intended to introduce the candidate to the overall purpose of accounting,
applicable regulations, the accounting treatment and presentation of basic transactions and
preparation and analysis of financial statements.
LEARNING OUTCOMES
A candidate who passes this paper should be able to:
• Prepare books of original entry and basic ledger accounts under the double entry system
• Prepare basic financial statements of sole traders, partnerships, companies,
manufacturing entities and not for profit organisations
• Comply with the regulatory framework in the accounting field
• Analyse financial statements by use of ratios and statement of cash flows
• Demonstrate basic understanding of public sector accounting framework
CONTENT
1. Introduction to Accounting
1.1 Nature and Purpose of Accounting
1.2 The objective of Financial Accounting
1.3 The Elements of Financial Statements
1.4 The Accounting Equation
1.5 The Users of Accounting Information
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10. Correction of errors and preparing financial statements with incomplete records
10.1 Types and causes of errors
10.2 Correcting errors in source documents, the books of prime entry, the ledger, the
trial balance and financial statements
10.3 Reasons for incomplete information
10.4 Preparation of financial statements from incomplete information
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UNIT DESCRIPTION
This paper is intended to equip the candidate with the knowledge, skills and attitude that will
enable him/her to communicate clearly and concisely, orally and in writing in formal and informal
situations.
LEARNING OUTCOMES
A candidate who passes this paper should be able to:
• Communicate effectively and ethically in an organization using different media
• Use non-verbal cues effectively in communication
• Demonstrate effective presentation skills
• Apply the protocols of team and virtual groups’ communication
• Write formal reports and proposals
• Apply information technology in communication
CONTENT
1. Introduction to communication
1.1 Meaning of communication
1.2 Role of communication in an organisation
1.3 Elements of communication
1.4 The communication process
1.5 Principles of effective communication
1.6 Essential of an effective communication system
1.7 Barriers to effective communication
2. Types of communication
2.1 Formal and informal communication
2.2 Flow of communication in an organisation
2.3 Grapevine communication
2.4 Internal and external communication
2.5 Interpersonal and intrapersonal communication
2.6 Cross-cultural communication
2.7 E-mail
2.8 Visual communication - graphs/charts/tables/diagrams/pictures
3. Oral communication
3.1 Meaning of oral communication
3.2 Importance of oral communication
3.3 Types of oral communication - Face to face and telephone conversations
3.4 Effective listening -The listening process, principles of effective listening, listening
techniques, barriers to effective listening
3.5 Interviews - Types, purpose, preparation and conduct of interviews
3.6 Persuasive communication - Meaning, objectives, creating persuasive messages,
approaches to persuasion
4. Non-verbal communication
4.1 Meaning and importance of non-verbal communication
4.2 Forms of non-verbal communication
4.3 Effective use of non-verbal communication
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1. Thrill, J and Bovee, C (2017). Business Communication Today (14th edition). Pearson.
2. Stanton, N (2016). Mastering Communication (5th edition). Wiley.
3. Taylor, S (2016). Communication for Business: A Practical Approach (4th edition).
Pearson.
4. Floyd, K. and Cardon, P. (2019). Business and Professional Communication. McGraw-
Hill.
5. Kasneb e-learning resources (link on the Kasneb website)
6. Kasneb approved study packs
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UNIT DESCRIPTION
This paper is intended to equip the candidate with the knowledge, skills and attitude that will
enable him/her to apply the principles of law and legal systems in an entity and ensure compliance
with basic principles of governance and ethics.
LEARNING OUTCOMES
A candidate who passes this paper should be able to:
• Demonstrate knowledge of essential elements of the legal system
• Demonstrate knowledge of legal personality
• Apply law of contract and tort in various scenarios
• Apply general principles of business law in practice
• Apply fundamental principles of ethics in practice
• Comply with fundamental principles of governance
CONTENT
2. Administrative Law
2.1 Meaning of administrative law
2.2 Sources of administrative law
2.3 Functions of administrative laws
2.4 Doctrine of separation of powers
2.5 Delegated legislation
2.6 Control of delegated legislation
2.7 Discretion and Judicial count of executive
2.8 Liability of state (contractual/ tortious)
2.9 Principles of natural justice
2.10 Judicial control of the Executive
2.11 Independence of Judiciary
2.12 Remedies in administrative law (mandamus, certiorari, prohibition, habeas corpus;
injunction and declaration)
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5. Law of Persons
5.1 Natural and artificial persons
5.2 Nationality, citizenship and domicile
5.3 Unincorporated and incorporated associations
5.4 Co-operative societies
6. Law of Tort
6.1 Nature of tort
6.2 General defenses under tort
6.3 Negligence
6.4 Types of liabilities in tort
6.5 Trespass
6.6 Limitation and survival of actions
6.7 Remedies in tort
6.8 Principles in awards damages
6.9 Defamation
7. Law of Contract
7.1 Definition of a contract
7.2 Classification of contracts
7.3 Essentials of a valid contract
7.4 Terms of a contract
7.5 Exemption clauses
7.6 Vitiating factors
7.7 Discharge of contract
7.8 Remedies for breach of a contract
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8. Sale of Goods
8.1 Nature of the contract of sale of goods
8.2 Types of goods
8.3 Formalities of the contract
8.4 Terms of the contract
8.5 Implied terms by statute, custom/usage
8.6 Rights and duties of the parties
8.7 Remedies for price and breach of contract
8.8 Auction sales
8.9 International contracts of sale: FAS, FOB, CIF, FCA, CPT, CIP, DAT, DAP, DDP,
CFR, DAF, DDU, Ex-works and Ex-ship
9. Agency
9.1 Meaning and nature of the agency contract
9.2 Types of agents
9.3 Parties to the agency relationship
9.4 Creation of agency
9.5 Authority of an agent
9.6 Rights and duties of the parties
9.7 Personal liability of agents
9.8 Liability of the parties
9.9 Termination of agency
10. Partnership
10.1 Nature of partnership
10.2 Registration process and requirements of partnership business
10.3 Types of partnerships
10.4 Rights, duties and liabilities of existing, incoming and minor partners
10.5 Management of partnerships
10.6 Dissolution of partnerships and its consequences
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1. Jackson, T. The Law of Kenya. (3rd edition). Nairobi: Kenya Literature Bureau.
2. Ogola J. J., Business Law. (Revised Edition): Focus publications limited.
3. Furmston M., (2017). Cheshire, Fifoot and Furmston’s Law of Contract (17th edition)
London: Butterworth’s.
4. Finch, E. & Fafinski, S. (2013) Tort Law (4th edition) London: Pearson.
5. Steel, J. (2017). Tort Law: Text, Cases, and Materials (4th edition). Oxford: Oxford University
Press.
6. Kasneb e-learning resources (link on the Kasneb website).
7. Kasneb approved study packs.
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UNIT DESCRIPTION
This paper is intended to equip the candidate with knowledge, skills and attitude to identify the
impact and interaction of economic principles in various situations and apply the principles in
decision making.
LEARNING OUTCOMES
A candidate who passes this paper should be able to:
• Apply basic mathematical and graphical techniques to analyse economic relationships
• Apply the knowledge of economics in decision making
• Analyse economic problems and suggest possible policy related recommendations
• Apply knowledge of economics in international trade and finance
• Relate economics to income levels and development in a country
CONTENT
1. Microeconomics
1.1 Introduction to economics
1.1.1 Definition of economics
1.1.2 Basic economic concepts: economic resources, human wants, scarcity and
choice, opportunity cost, production possibility curves/frontiers
1.1.3 Scope of economics: Micro and macro economics
1.1.4 Methodology of economics: positive and normative economics, scientific
methods, economics as a social science.
1.1.5 Economic systems: planned economy, free market economy, mixed
economy
1.1.6 Consumers’ sovereignty and its limitations
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2.4.2 Unemployment
2.4.2.1 Definition of unemployment
2.4.2.2 Types and causes of unemployment
2.4.2.3 Control measures of unemployment
2.4.2.4 Relationship between unemployment and inflation: The
Phillips curve
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1. Mudida R. Modern Economics. (2nd edition). Focus Publishers Ltd. Nairobi, Kenya.
2. Mukras. M. S . Elements of Mathematical Economics (Revised Edition). Kenya Literature
Bureau. Nairobi, Kenya.
3. Kasneb e-learning resources (link on the Kasneb website)
4. Kasneb approved study packs
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UNIT DESCRIPTION
This paper is intended to equip the candidate with knowledge, skills and attitudes that will enable
the learner to use quantitative analysis tools in business operations and decision making.
LEARNING OUTCOMES
A candidate who passes this paper should be able to:
• Use mathematical techniques to solve business problems.
• Apply set and probability theories in business decision making
• Apply operation research techniques in decision making
• Apply hypothesis testing in analysing business situations
• Apply linear programming to solve practical business problems
CONTENT
1. Mathematical Techniques
1.1 Functions
1.1.1 Definition
1.1.2 Functions, equations, inequalities and graphs; linear, quadratic, cubic,
Exponential and logarithmic functions
1.1.3 Application of mathematical functions in solving business problems
1.3 Calculus
1.4 Differentiation
1.4.1 Definition
1.4.2 Rules of differentiation (general rule, chain, product, quotient)
1.4.3 Differentiation of exponential and logarithmic functions
1.4.4 Turning points (maxima, minima and inflexion)
1.4.5 Application of differentiation to business problems
1.5 Integration
1.5.1 Definition
1.5.2 Rules of integration (general rule)
1.5.3 Integration of exponential and logarithmic functions
1.5.4 Applications of integration to business problems
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6. Time series
6.1 Definition of time series
6.2 Components of time series (circular, seasonal, cyclical, irregular/ random, trend)
6.3 Application of time series
6.4 Methods of fitting trend; freehand, semi-averages, moving averages, least-squares
methods
6.5 Models - additive and multiplicative models
6.6 Measurement of seasonal variation using additive and multiplicative models
6.7 Forecasting time series value using moving averages, ordinary least squares
method and exponential smoothing
7. Linear programming
7.1 Definition of decision variables, objective function and constraints
7.2 Assumptions of linear programming
7.3 Solving linear programming using graphical method
7.4 Solving linear programming using simplex method (basic scenarios)
8 Decision Theory
8.1 Definition
8.2 Decision-making process
8.3 Decision-making environment; deterministic situation (certainty)
8.4 Decision making under risk - expected monetary value, expected opportunity loss,
risk using the coefficient of variation, the expected value of perfect information
8.5 Decision trees - sequential decision, the expected value of sample information
8.6 Decision making under uncertainty - maximin, maximax, minimax regret, Hurwicz
decision rule, Laplace decision rule.
Sample Reading and Reference Material
1. Kothari, U. D. (2017). Quantitative Techniques in Business, Management and Finance: A
Case-Study Approach. CRC Press.
2. Taha, H. A. (2018). Operations Research: An Introduction. New Delhi: Pearson India.
3. Groebner, D., Shannon, P., & Fry, P. (2017). Business Statistics: A Decision-Making
Approach (10th edition). New York: Pearson.
4. Berenson, M., Levine, D., Szabat, K., & Stephan, D. (2018). Basic Business Statistics:
Concepts and Applications. New York: Pearson.
5. Kasneb e-learning resources (link on the Kasneb website).
6. Kasneb approved study packs.
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UNIT DESCRIPTION
This paper is intended to equip the candidate with knowledge, skills and attitudes that will enable
him/her to apply information communication technology effectively in solving business problems,
decision making and in adapting to new working environments.
LEARNING OUTCOMES
A candidate who passes this paper should be able to:
• Demonstrate proficiency in decision making using contemporary information communication
technology tools
• Use various application packages to solve business issues
• Use data communication networks, the Internet and e-commerce in optimising business
opportunities
• Apply data security measures and procedures
• Implement information systems legal, ethical and social issues.
Note to trainers: Trainers are advised to use a practical approach in offering tuition for this unit
through infusing practical demonstrations in a computerized environment.
CONTENT
1. Introduction to information communication technology (ICT)
1.1 Introduction to information communication technology
1.2 Computer hardware
1.3 Computer software
1.4 Programming languages and tools
1.5 Information systems personnel and hierarchy
1.6 Role of ICT in business environments
1.7 Information centres
1.8 Impact of ICT in business
2.6 Spreadsheets
2.6.1 Features of a spreadsheet program
2.6.2 Formatting and editing spreadsheet
2.6.3 Formulas
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3 Computer networks
3.1 Computer networks concepts
3.2 Computer network hardware and software
3.3 Data transmission media
3.4 Types of computer networks
3.5 Advantages and limitations of networking
3.6 Cloud computing concepts, features and models
4.7 Internet of things (IoT)
4 The Internet
4.1 Introduction to the Internet
4.2 Applications of Internet
4.2.1 Using search engines
4.2.2 E-mails
5.2.3 Electronic communication
4.3 Internet services - e-mails, www, instant messaging
4.4 Internet service providers (ISPs)
4.5 Applications of internet
4.6 Online collaborative tools; cloud sheets and cloud documents
4.7 Impact of internet on society
5 Data security
5.1 Overview of data security
5.2 Threats and controls
6.3 Data backup and restoration procedures
6 Information systems in an enterprise
7.1 Overview of information systems
7.2 Components of an information system
7.3 Types and characteristics of information systems
7.4 Systems in a functional perspective
7.5 Enterprise applications and the business process integration
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UNIT DESCRIPTION
This paper is intended to equip the candidate with knowledge, skills and attitudes that will enable
him/her to apply and comply with the provisions of Company Law in relevant circumstances and
environments and further to demonstrate knowledge of the law and regulations governing
corporate entities and ensure compliance in practice.
LEARNING OUTCOMES
A candidate who passes this paper should be able to:
• Apply legal principles relating to formation of companies
• Evaluate the rights and obligations of members and shareholders
• Comply with the legal principles governing liquidation of corporates
• Comply with the legal principles governing restructuring of companies
• Comply with the legal principles relating to companies incorporated outside the country
• Comply with the legal requirements relating to the financing of companies.
CONTENT
1. Nature and classification of companies
1.1 Nature and characteristics of a company
1.2 Types of companies
1.3 Principle of legal personality and veil of incorporation
1.4 Distinction between companies and other forms of business associations sole
proprietorships, partnerships and cooperative societies.
2. Formation of companies
2.1 Promoters and pre-incorporation contracts and deeds.
2.2 Process and drafting documents required to form a company.
2.3 Rules relating to company names
2.4 Memorandum and articles of association
2.5 Certificate of incorporation
2.6 Effects of incorporation
2.7 Execution of a company’s documents
2.8 Alteration of status of companies
3. Membership of a company
3.1 Acquisition of membership
3.2 Register of members
3.3 Rights and liabilities of members
3.4 Cessation of membership
3.5 Register of a company’s beneficial owners
3.6 Derivative actions.
4. Shares
4.1 Classes of shares
4.2 Variation of class rights
4.3 Share certificates
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5. Share capital
5.1 Meaning and types of share capital
5.2 Raising of share capital
5.3 Prospectus/information memorandum
5.4 Maintenance of capital
5.5 Alteration and Consolidation of share capital
5.6 Dividends
6. Debt capital
6.1 Borrowing powers of a company
6.2 Company assets that can secure a company’s borrowings
6.3 Company debentures
6.4 Company charges
6.5 Meetings and resolutions in respect of debt capital
6.6 Registration of charges
6.7 Remedies for debenture holders
7. Company meetings
7.1 Nature and classification of company meetings
7.2 Types of company meetings held to execute various functions of company
meetings
7.3 Methods of holding company meetings
7.4 Essentials of a valid physical, virtual and hybrid meeting Voting
7.5 Resolutions
7.6 Drafting resolutions
7.7 Protection of minority shareholders
8. Company Directors
8.1 Qualifications, appointment and disqualification
8.2 Powers and duties of directors
8.3 Removal and vacation of office
8.4 Register of directors
8.5 Remuneration of directors
8.6 Loans to directors
8.7 Compensation for loss of office
8.8 Disclosure of director’s interest in contracts
8.9 The rule in Turquand’s case/Indoor Management rule
8.10 Insider dealing
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1. Laibuta, K. I. (2017). A Handbook of Company Law (Revised edition). Nairobi: Law Africa
Publishing.
2. Nyasae, A. N. (2016). Corporate Secretarial Practice in Kenya Today. Nairobi: Law Africa
Publishing.
3. Nyasae, A. N. (2016). Meetings: Law and Procedure in Kenya Today. Nairobi: Law Africa
Publishing.
4. Kasneb e-learning resources (link on the Kasneb website).
5. Kasneb approved study packs.
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UNIT DESCRIPTION
This paper is intended to equip the candidate with knowledge, skills and attitudes that will enable
him/her to effectively manage, control and optimize on institutional finances.
LEARNING OUTCOMES
A candidate who passes this paper should be able to:
• Explain the nature and scope of financial management
• Describe the nature and functions of financial institutions and markets
• Analyse the sources of finance for an organisation and evaluate various financing options
• Evaluate various investment decision scenarios available to an organisation
• Evaluate the performance of a firm using relevant financial tools
• Make appropriate capital structure decisions for a firm, Value financial assets and firms
• Make appropriate liquidity and dividend decisions for a firm
• Evaluate current developments in the field of finance and their impact on financial
decisions
CONTENT
1. Overview of financial management
1.1 Theoretical framework of financial management - The role and responsibilities of
a finance manager towards shareholders, employees, society, government and
other stakeholders.
1.2 Goals of a firm and corporate strategy; financial and non-financial objectives,
overlaps and conflicts among the objectives
1.3 Agency theory, stakeholder’s theory and corporate governance
1.4 Measuring managerial performance, compensation and incentives
1.5 Ethical issues in financial management
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4. Time-value of money
4.1 Concept of time value of money
4.2 Relevance of the concept of time value of money in financial management
4.3 Time value of money versus time preference of money
4.4 Time line
4.5 Real versus nominal cash flows
4.6 Compounding techniques - Compound interest, Future value (FV) of a single cash
flow and series of cash flows; Compounding of annuity cash flows
4.7 Discounting techniques - Present value (PV) of a future cash flow and series of
future cash flows and discounting of annuity cash flows
4.8 Loan amortisation and sinking funds
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1. Pandey, I. M. (2015). Financial Management (11th edition). New Delhi: Vikas Publishing.
2. Damodaran, A. (2001). Corporate Finance: Theory and Practice (2nd edition). New York:
John Wiley & Sons Inc.
3. Mclaney, E. (2017). Business Finance: Theory and Practice (11th edition). Harlow: Pearson.
4. Brealey, R. A., Myers, S. C., & Allen, F. (2019). Principles of Corporate Finance (13th
edition). Boston: McGraw-Hill Education.
5. Kasneb e-learning resources (link on the Kasneb website).
6. Kasneb approved study packs.
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UNIT DESCRIPTION
This paper is intended to equip the candidate with knowledge, skills and attitudes that will enable
him/her to account for more complex financial transactions and to prepare as well as analyse
financial statements in the private and public sectors.
LEARNING OUTCOMES
A candidate who passes this paper should be able to:
• Account for various assets and liabilities
• Prepare financial statements including published financial statements for various types of
organisations
• Account for specialised transactions
• Prepare group financial statements
• Analyse and interpret financial statements
• Apply International Financial Reporting Standards (IFRSs) and International Public Sector
Accounting Standards (IPSASs) in preparing non-complex financial statements.
CONTENT
1. Accounting for Assets and Liabilities [Assets and liabilities as covered in Financial
Accounting (Foundation Level) are also relevant here]
1.1 Investment Property
1.2 Assets used in exploring for and evaluation of mineral resources
1.3 Non-current assets held for sale
1.4 Financial Assets and Financial Liabilities (Recognition, Classification, Initial
measurement, subsequent measurement, reclassifications and de-recognition)
1.5 Leases (Exclude Sale and Leaseback and dealers in leasing assets)
1.6 Current and Deferred tax
1.7 Government grants
1.8 Provisions, contingent liabilities and assets
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1. 1. McKeith, J., & Collins, B. (2013). Financial Accounting and Reporting (2nd edition).
McGraw-Hill Education.
2. Elliott, B., & Elliott, J. (2019). Financial Accounting and Reporting (19th edition). Harlow:
Pearson.
3. Cotter, D, (2012) Advanced Financial Reporting: A Complete Guide to IFRS. Harlow.
Financial Times / Prentice Hall.
4. Kasneb e-learning resources (link on the Kasneb website).
5. Kasneb approved study packs.
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UNIT DESCRIPTION
This paper is intended to equip the candidate with knowledge, skills and attitudes that will enable
him/her to conduct the audit of an entity.
LEARNING OUTCOMES
A candidate who passes this paper should be able to:
• Demonstrate an understanding of the regulatory framework governing the external audit
of financial statements
• Demonstrate an understanding of International Standards on Auditing where appropriate
and the International Code of Ethics for Professional Accountants (including International
Independence Standards)
• Implement the process of planning an audit, prepare audit programs and effectively
conduct an audit
• Undertake audit risk assessments (excluding group accounts)
• Apply the risk based audit approach to audit of limited companies
• Prepare non - complex audit reports for audit engagements.
CONTENT
1. Nature and purpose of an audit
1.1 Nature and objectives of an audit
1.2 Development of audit (early audit and modern audit)
1.3 Users of audited financial statements
1.4 Features of audits
1.5 Distinction between auditing and accounting
1.6 Types and classification of audits
1.7 Situations when different audits are performed (interim, continuous, final,
operational)
1.8 Advantages and disadvantages of various types of audits
1.9 Nature of work done for different audits
1.10 Inherent limitations of an audit
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7. Audit documentation
6.1 Reasons and importance of audit documentation
6.2 Sources, features and purposes of working papers
6.3 Storage of working papers-permanent audit file and current audit file, auditors note
book or diary
6.4 Lien or custody on working papers
6.5 Standardisation of working papers - advantages and disadvantages
6.6 Safe custody and retention of working papers
6.7 Form and content of working papers
6.8 Automated working papers
6.9 Quality control policies and procedures implemented by audit firm
6.10 Objectives of quality controls to the audit firm/ auditors
6.11 Peer review and its objectives
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2. Millichamp, A., & Taylor, J. (2018). Auditing (11th edition). Cengage Learning EMEA.
3. Johnstone-Zehms, K. M., Gramling, A. A., & Rittenberg, L. E. (2018). Auditing: A Risk-
Based Approach to Conducting Quality Audits. Australia: South-Western / Cengage
Learning.
4. Whittington, R., & Pany, K. (2021). Principles of Auditing & Other Assurance Services
(21st edition). New York: McGraw-Hill Education.
5. Arens, A., Elder, R., Beasley, M., & Hogan, C. (2016). Auditing and Assurance Services
(16th edition). Boston: Pearson.
6. Kasneb e-learning resources (link on the Kasneb website).
7. Kasneb approved study packs.
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UNIT DESCRIPTION
This paper is intended to equip the candidate with knowledge, skills and attitudes that will enable
him/her to apply the principles of cost estimation and cost and management accounting
techniques and methods for decision making.
LEARNING OUTCOMES
A candidate who passes this paper should be able to:
• Estimate the cost of goods and services
• Analyse product costs for manufacturing and non-manufacturing activities
• Prepare marginal and absorption cost statements
• Analyse an organisation’s activities through budgetary control process
• Analyse variances for decision making
CONTENT
1. The context of management accounting:
1.1 Definition and scope of Cost and Management accounting
1.2 Role of Management Accounting in decision making
1.3 Users of Management accounting information
1.4 Cost accounting as a subset of management accounting
1.5 Management accounting and financial accounting
1.6 Difference between management accounting and financial accounting
1.7 Relationship between Management accountant and other managers
1.8 Limitations of management accounting
4. Cost accumulation
4.1 Accounting for direct material cost
4.1.1 Introduction to Material costing
4.1.2 Objectives of material control
4.1.3 Essential requirements of material control system
4.1.4 Centralised and decentralized purchasing
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4.2 Valuing inventory issues using FIFO, LIFO, standard cost method, weighted
average, simple average and replacement cost method
4.3 Accounting for direct labour cost
4.3.1 Methods of labour remuneration
4.3.2 Bonus schemes
4.3.3 Factors influencing wages
4.4 Accounting for overhead cost
4.4.1 Overhead apportionment
4.4.2 Primary overhead distribution
4.4.3 Secondary overhead distribution methods (continuous allocation method,
algebraic method, direct allocation method, sequential allocation method)
4.4.4 Absorption of overheads
9. Budgetary control
9.1 Introduction to budgets
9.1.1 Essential features of a budget
9.1.2 Objectives of budgetary control
9.1.3 Difference between forecasts and budgets
9.2 Types of budgets
9.2.1 Classification based on time (long-term budgets, short-term budgets and
current budgets)
9.2.2 Classification based on functions (functional/subsidiary budgets, master
budgets)
9.2.3 Classification based on capacity (fixed budgets, flexible budgets)
9.3 Preparation of budgets
9.3.1 Functional budgets including cash budget and master budget
9.3.2 Fixed and flexible budgets
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UNIT DESCRIPTION
This paper is intended to equip the candidate with knowledge, skills and attitudes that will enable
him/her to apply public financial management principles, implement public financial management
regulations at middle management levels and to prepare non-complex tax computations for
individuals and corporates.
LEARNING OUTCOMES
A candidate who passes this paper should be able to:
• Apply public financial management requirements in practice in non-complex environments
in both the public and private sectors
• Compute taxes for various individuals and entities
• Apply the written taxation laws in addressing various tax issues
• File tax returns
• Undertake non-complex tax reviews.
CONTENT
1. Introduction to Public Financial Management
1.1 Nature and scope of public finance
1.2 Sources of public finance
1.3 Objectives of the Public Financial Management Act and Financial regulations
1.4 Budget process for national, county and public entities, Development plan
preparation, Treasury circulars, Cash flow projections, Budget estimates and
revenue raising measures.
1.5 Role of the National Treasury and County Treasuries with respect to the
management and control of public finance.
7. Introduction to Taxation
7.1 Definition of Tax, Taxation and Types of taxes in Kenya
7.2 History of taxation
7.3 Classification of taxes; Tax shifting and Factors that determine tax shifting
7.4 Principles of an optimal tax system
7.5 Types of tax systems; Single versus multiple tax systems
7.6 Purposes of taxation/Why the government levy taxes
7.7 Tax evasion and tax avoidance
7.8 Taxable capacity
7.9 Budgetary and Fiscal policies
7.10 The Revenue Authority; Structure, Functions, Large and Medium Taxpayers Office
mandate
8. Taxation of Income
8.1 Introduction
8.1.1 Basis of charging tax in Kenya: Section 3 of the Income Tax Act
8.1.2 Concept of residency and Criteria of taxing income in Kenya.
8.1.3 Taxable and non-taxable persons
8.1.4 Specified Sources of income
8.1.5 Incomes exempted from taxation
8.2 Taxation of Employment income
8.2.1 Taxable cash and non-cash benefits/rewards received from employment
8.2.2 Non-taxable cash and non-cash benefits/rewards received from
employment
8.2.3 Allowable deductions against employment income
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9. Investment Allowances/deductions
9.1 Introduction to capital allowances and Rationale for capital deductions
9.2 Types of capital allowances; Theory and computations
9.3 Investment deductions; Ordinary manufacturers
9.4 Industrial building deductions
9.5 Wear and tear allowances
9.6 Farm works deductions
9.7 Shipping investment deduction
9.8 Other deductions
All the above should be illustrated with relevant computations
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UNIT DESCRIPTION
This paper is intended to equip the candidate with knowledge, skills and attitudes that will enable
him/her to apply and demonstrate leadership and management skills to grow an enterprise under
various circumstances and environments including under uncertainties.
LEARNING OUTCOMES
A candidate who passes this paper should be able to:
· Demonstrate an understanding of leadership techniques and management principles
· Apply knowledge of leadership and management theories in organizations
· Effectively undertake management functions
· Make rational management decisions in an organisational context
· Embrace and manage strategic change.
CONTENT
1. Introduction to management
1.1 Nature of management
1.2 Importance of management
1.3 Levels of management
1.4 Multi-disciplinary nature of management
1.5 Roles of management as advocated by Henry Mintzberg
1.6 The changing roles of management and managers
1.7 Qualities of an effective manager
1.8 Management and administration
5. Environmental Analysis
5.1 Micro-environment
5.2 Macro-environment
5.3 Internal environment
5.4 External environment
5.5 Tools of environmental analysis
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7. Decision making
7.1 Importance of decision making
7.2 Decision making models/approaches
7.3 Types of decisions
7.4 Decision making process
7.5 Problem solving skills
7.6 Decision making under different conditions
7.7 Challenges in decision making
7.8 Effective decision making
8. Enterprise management
8.1 Meaning and concept of entrepreneurship
8.2 Intrapreneurship
8.3 Entrepreneurial development
8.4 Enhancing creativity and innovation in organisations
8.5 Methods of generating ideas
8.6 Introduction to business plan
8.7 Protection of intellectual properties
9. Project management
9.1 Project management concepts
9.2 Characteristics of a project
9.3 Importance of projects
9.4 Features of projects and baseline surveys
9.5 Illustration of the Project life cycle
9.6 Project planning and organising
9.7 Project resources and costing
9.8 Project completion and evaluation
1. Cole, G. A., & Kelly, P. (2020). Management Theory & Practice (9th edition). Cengage
Learning.
2. Robbins, S. P., & Coulter, M. A. (2021). Management (15th edition). New Delhi: Pearson
India.
3. Robbins, S. P., Coulter, M., & Decenzo, D. A. (2017). Fundamentals of Management:
Essential Concepts and Applications (10th edition). Boston: Pearson.
4. Kasneb e-learning resources (link on the Kasneb website).
5. Kasneb approved study packs.
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UNIT DESCRIPTION
This paper is intended to equip the candidate with knowledge, skills and attitudes that will enable
him/her to account for more complex transactions, prepare advanced financial statements and
reports in the private and public sectors and demonstrate awareness of trends in accounting
practice.
LEARNING OUTCOMES
A candidate who passes this paper should be able to:
• Prepare financial statements for subsidiaries, associates and jointly controlled entities in
compliance with International Financial Reporting Standards (IFRSs) and International
Public Sector Accounting Standards (IPSASs) as applicable
• Analyse financial statements for public and private sector entities
• Account for complex accounting transactions
• Apply ethical standards in accountancy work and practice
CONTENT
1. Accounting for Assets and Liabilities
1.1 (Assets and Liabilities as covered in Financial Accounting and Financial Reporting
are also relevant here)
1.2 Leases Including Sale and leaseback and dealers in leased assets
1.3 Deferred Tax (With group aspects)
1.4 Employee Benefits
1.5 Share Based Payments
1.6 Financial Assets and Financial Liabilities (Impairment, Hedging, Embedded
Derivatives and Disclosures)
1.7 Fair Value Measurement
1.8 Impairment of Assets
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UNIT DESCRIPTION
This paper is intended to equip the candidate with knowledge, skills and attitudes that will enable
him/her to apply advanced financial management techniques and methods in a practical work
environment in both private and public sectors.
LEARNING OUTCOMES
A candidate who passes this paper should be able to:
• Make advanced capital budgeting decisions and make appropriate capital structure
decisions for an organisation
• Evaluate portfolios and apply the capital asset pricing model and other multifactor Models
in financial decision making
• Apply the relevant models and skills in prediction of corporate failure
• Apply derivatives in financial risk management and apply international finance concepts.
• Evaluate mergers and acquisitions
• Undertake corporate restructuring and re-organisation
• Apply valuation techniques in real estate finance.
CONTENT
1. Advanced capital budgeting decision
1.1 Incorporating risk/uncertainty in capital investment decisions
1.2 Techniques of handling risk: Basic Methods of analysis - Expected Monetary Value
(EMV), The Standard deviation and Coefficient of Variation
1.3 Advanced Methods of analysis; sensitivity analysis, scenario analysis, decision
trees, simulation analysis, utility analysis, risk adjusted discounting rate (RADR)
and certainty equivalent method
1.4 Impact of financing on investment decisions - the concept of adjusted present
value (APV)
1.5 Incorporating capital rationing in capital investment appraisal; Single period capital
rationing with divisible projects; Multi-period capital rationing with divisible capital
investments.
1.6 Incorporating inflation in capital investment appraisal
1.7 Evaluation of projects of unequal lives; The equivalent annual annuity approach
and the Replacement chain analysis (Constant scale finite period replication
criteria)
1.8 Project duration as a measure of risk
1.9 The real options in Capital Budgeting-Characteristics of the real Options; Types of
Options in Capital investment Appraisal-Strategic investment option
(Expansionary Option), Timing option (Option to delay a project), abandonment
option (Option to Withdraw a project), the replacement option and the Option to re-
deploy a project, challenges in use of options in investment analysis.
1.10 Common capital budgeting pitfalls
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UNIT DESCRIPTION
This paper is intended to equip the candidate with knowledge, skills and attitudes that will enable
him/her to solve complex tax issues, implement tax planning initiatives and administer tax in
various business environments.
LEARNING OUTCOMES
A candidate who passes this paper should be able to:
• Compute the tax liability of enterprises, entities and specialised business activities.
• Handle all value added tax matters
• Apply the procedure for conducting a tax investigation
• Explain the tax dispute resolution mechanism
• Explain the tax implications for cross border business activities.
• Develop tax policies
CONTENT
1. Taxation of business income and specialized business activities
1.1 Partnership business
1.1.1 Admission of a new partner and retiring partners during the year
1.1.2 Conversion of partnerships into liability companies
1.1.3 Incomplete records pertaining to partnership businesses
1.1.4 Case law on taxation of partnership businesses
2. Limited companies
2.1 Taxation of companies, including holding company, subsidiaries, branches and
related parties
2.2 Incomplete records pertaining to limited companies
2.3 Minimum tax
2.4 Shortfall tax computation
2.5 Taxation of dividends
2.6 Case law on taxation of limited companies
2.7 Rental income, including residential rent income, Commercial rent income and
Real estate investment trusts (REITS)
2.8 Charitable institutions
2.9 Leasing entities, including hire purchase lease agreements
2.10 Co-operative societies, Saccos
2.11 Trade associations, amateur sporting association and clubs
2.12 Trust bodies, settlements and estates under administration
2.13 Financial institutions: Banks, insurance companies
2.14 Sea and air transport undertakings
2.15 Collective investment schemes
2.16 Professional, training, management, agency, and consultancy fees
2.17 Property developers and contractors
2.18 Taxation of extractive industries
2.19 Capital gain tax
2.20 Digital service tax
2.21 Application of relevant case law
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4. Tax investigations
4.1 Tax fraud
4.2 Civil and criminal tax investigation
4.3 Events which may trigger an investigation
4.4 Back duty and in-depth examination
4.5 Customs and excise investigations
4.6 Negotiation for settlement: Tax amnesty, Tax Penalties and Enforcement for
outstanding taxes
4.7 Types of tax audit and their significance
4.8 Application of relevant case law
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UNIT DESCRIPTION
This paper is intended to equip the candidate with knowledge, skills and attitudes that will enable
him/her to undertake advanced audit and assurance engagements in compliance with regulatory
frameworks and International Standards on Auditing.
LEARNING OUTCOMES
A candidate who passes this paper should be able to:
• Recognise the regulatory, professional, and ethical issues relevant to those carrying out
an assurance engagement
• Assess and recommend appropriate quality control policies and procedures in practice
management
• Evaluate findings and results of work performed and draft suitable audit reports on
assignments
• Draft different types of audit opinions based on audit evidence gathered during an audit.
• Draft engagement letters for audit and non-audit services that fall under International
Standards on Auditing and ensure compliance with the relevant legal regulations
• Incorporate emerging developments in the conduct of an audit.
CONTENT
1. Assurance and non-assurance engagements
1.1 The concept of assurance and non-assurance engagements
1.2 Engagement letters for assurance and non-assurance engagements
1.3 Agreed upon procedures
1.4 Compilation engagements
1.5 Types of assurance reports
1.6 Key Audit Matters
1.7 Different types of audit opinions based on audit evidence gathered -
Entities/Companies that are exempt from audit in Kenya.
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9. Regulatory Environment
9.1 International regulatory frameworks for audit and assurance services.
9.2 Money Laundering
9.3 Laws and regulations
9.4 Other Regulators with interest in the audit space in Kenya such as Central Bank
of Kenya, Insurance Regulatory Authority, Capital Market Authority and Retirement
Benefit Authority and their requirements
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UNIT DESCRIPTION
This paper is intended to equip the candidate with knowledge, skills and attitudes that will enable
him/her to apply advanced management accounting tools and techniques for decision making in
the context of organisational strategy.
LEARNING OUTCOMES
A candidate who passes this paper should be able to:
• Use cost estimation data in decision making
• Apply advanced management accounting techniques to aid in organisational strategic
decision making
• Use financial and non-financial indicators to measure organisational performance
• Apply environmental management accounting concepts in practice.
CONTENT
1. Strategic management accounting information
1.1 Sources of strategic management accounting information
1.2 Role of strategic management accounting in strategic planning and control
1.3 Governance and control of strategic management accounting information
1.4 Scope and limitations of management accounting
1.5 Ethical standards for management accountants
4. Pricing decisions
4.1 External pricing methods
4.2 Transfer pricing in divisionalised companies: Domestic and international transfer
pricing
4.3 Product life cycle costing, Target costing and Kaizen costing
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UNIT DESCRIPTION
This paper is intended to equip the candidate with knowledge, skills and attitudes that will enable
him/her to implement regulations and policy directives governing advanced public financial
management issues, apply advanced financial management methods and techniques to analyse
and manage public debt, public investments among other areas in public sector finance.
LEARNING OUTCOMES
A candidate who passes this paper should be able to:
• Ensure compliance with various regulations in public financial management
• Demonstrate awareness of the changing local and global public financial management
issues
• Apply problem-solving skills in the practice of public financial management
• Apply public financial management tools and techniques in evaluating and managing
public investments, public debt, enterprise management in complex and dynamics
environments
• Implement public procurement regulations in practice.
• Recommend policy changes in the area of public sector financial management
CONTENT
1. Introduction to Public Financial Management
1.1 The scope, objective, and principles of Public Financial management (PFM)
1.2 Relevance of PFM Act in management of Public finances
1.3 Review PFM Act as an important tool to implement public policies
1.4 Best practices for public financial management in the global context
1.5 Challenges affecting implementation of Public Finances
1.6 The Public Financial Management Cycle
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